Interview Questions for an Accountant

Walk me through your month-end close process from start to a set of management accounts.

What to look for: A logical sequence: cut-off, journals, accruals and prepayments, reconciliations, balance-sheet substantiation, and variance review before reporting. Specifics on timeline and controls, not a vague list.

Explain the difference between an accrual and a prepayment with a concrete example.

What to look for: Accurate matching-principle reasoning: accrual recognizes incurred but unbilled cost, prepayment defers cash paid in advance. Correct journal entries and the balance-sheet impact.

How do you perform a bank reconciliation, and what do you do with an unexplained difference?

What to look for: Reconciling to statement, identifying timing differences and errors, and investigating to source rather than posting a balancing plug. Escalates control weaknesses when something does not reconcile.

How do you substantiate a balance-sheet account, and why does substantiation matter?

What to look for: Backing each balance with supporting schedules and evidence, not just a number. Understands that an unsubstantiated balance hides errors and creates audit and compliance risk.

Walk me through preparing and submitting a VAT or GST return accurately and on time.

What to look for: Correct treatment of input and output tax, reconciliation to the ledger, awareness of edge cases like reverse charge, and respect for filing deadlines and penalties for error.

How do the P&L, balance sheet, and cash flow statement connect?

What to look for: Net income flows to retained earnings; the cash flow bridges accrual profit to cash via working-capital and non-cash movements. Demonstrates the articulation between the three statements.

Tell me about a time you found a material error in the books. How did you catch and resolve it?

What to look for: A real discovery through reconciliation or review, root-cause analysis, correction, and a control to prevent recurrence. Shows diligence and that they raise issues promptly.

Describe how you handled a tight month-end or statutory deadline with competing demands.

What to look for: Prioritization, a clear close checklist, and meeting the deadline without sacrificing accuracy. Composure under time pressure where the date is non-negotiable.

Tell me about your experience supporting an external audit.

What to look for: Preparing reconciliations and supporting schedules, responding to auditor queries clearly, and well-organized working papers. Treats the auditor relationship as cooperative, not adversarial.

Give an example of a control weakness or anomaly you flagged to a Finance Manager.

What to look for: Spotting a transactional anomaly or weak control, raising it constructively, and proposing a fix. Demonstrates ownership of accuracy and the integrity of the ledger.

An account will not reconcile and the close is due tomorrow. How do you proceed?

What to look for: Methodically isolating the difference, escalating if unresolved, and never forcing a balancing entry to hit the deadline. Documents and flags rather than hides the issue.

You suspect a vendor invoice is a duplicate already paid. What do you do?

What to look for: Checking against the AP ledger and payment records, holding payment, confirming with the vendor, and recommending a control to catch duplicates. Protects cash and accuracy.

How would you tighten the close process if it consistently runs late?

What to look for: Identifying bottlenecks, automating reconciliations, pre-close cut-off discipline, and a structured checklist with owners. Process improvement grounded in where time is actually lost.

Management asks why gross margin moved unexpectedly this month. How do you investigate?

What to look for: Variance analysis against budget and prior period, checking cut-off, accruals, pricing, and cost classification. Explains the driver with evidence rather than a surface guess.

You realize a prior-period return was filed with an error. What do you do?

What to look for: Quantifying the impact, correcting via the proper adjustment or amended return, and disclosing to the right people promptly. Owns the error rather than concealing it.

How do you explain a financial discrepancy to a non-finance colleague?

What to look for: Clear, jargon-free explanation tied to the business impact and the corrective action. Patience and accuracy without overwhelming the listener.

How do you keep accuracy high when you are also under deadline pressure?

What to look for: Checklists, reconciliations, review steps, and refusing to cut corners on accuracy. Recognizes that errors in financial records have downstream compliance consequences.

How do you handle confidential financial information across the organization?

What to look for: Strict discretion, sharing on a need-to-know basis, and following access controls. Treats payroll and sensitive figures with appropriate confidentiality.